Optimization

EMB have developed sophisticated insurance price optimization solutions to meet the needs of a wide range of clients, whether intermediaries or underwriters. These solutions are supported by a fully-integrated suite of tried-and-tested software products, including EMB Optimizer, a powerful tool designed specifically for individual risk mathematical price optimization.
 
Whether an insurer or intermediary, challenging profit and volume KPI objectives may not be achievable through uniform profit loads or commission rates. Instead, applying loads which reflect individual risk competitiveness and customer behavioral characteristics can deliver significant improvements in portfolio performance, whether as immediate profit uplift, higher business volumes, or improvements in business mix. 

EMB have developed and implemented many different techniques for determining optimized profit and commission loads. These techniques span a range of complexities to mirror the capabilities of your rating engine, from table-based component pricing solutions to full individual risk mathematical optimization. As your rating engine develops, EMB’s optimization solutions grow with it. EMB can support you through a phased implementation of price optimization capabilities, from proof-of-concept, through “quick-win” solutions which exploit current rating engine capabilities, towards leading-edge solutions providing maximum profit uplift and wide flexing of strategic targets. Whichever solution is appropriate, EMB can provide consistent and complementary approaches for optimizing your renewal portfolio and new business enquiries. 

EMB are able to offer broad-based strategic advice on price optimization issues in addition to market-leading software tools and technical analysis. EMB can support you with:
• strategic pricing advice, readiness assessment and optimization foundation activities, regulatory issues and managing cultural change,
• advice on revised control cycle activities, roles and responsibilities, optimization risk management and MI,
• rapid implementation interim optimization solutions, delivering quick-win performance uplift and proof-of-concept support for further investment,
• building or refining technical optimization components, including risk premium and price-elasticity of demand models. EMB are able to deploy novel proprietary elasticity modeling techniques, using the market-leading EMBLEM software in conjunction with other analysis tools,
• identifying distinct customer price-elasticity segments, and customer profitability analysis,
• providing software tools, and embedding these into the control cycle process,
• implementation support, training and knowledge transfer. 

EMB Optimiser is a fast and flexible software tool for individual risk price optimization, running in minutes even on large portfolios. Optimiser deploys a mathematical optimization algorithm developed for and appropriate to the insurance industry, rather than borrowed from other financial services sectors, to ensure maximum profit uplift. Optimiser caters flexibly for individual risk and portfolio-level business constraints, enabling management to consider real-life strategic KPI scenarios, and has powerful diagnostic capabilities for sense-checking prices prior to implementation. It is fully compatible with EMBLEM and Rate Assessor, supporting elasticity models of many different forms and providing output to rating systems and the client’s MI suite. 

To learn more about EMB’s experience in implementing leading-edge insurance price optimization solutions, please contact Serhat Guven () or Geoff Werner ()